One Big Beautiful Bill
- Ishaan Satija
- Feb 4
- 1 min read
Intro
A large federal tax package is reshaping what many households owe and creating a new break for people with car loans. For some families, this will change whether they feel they are getting ahead or just catching up.
What Changed
For the 2025 tax year, the standard deduction rises to $31,500 for married couples filing jointly and $15,750 for single filers. That means many people will stop itemizing and simply take the larger flat deduction. The law also adds a new deduction for car loan interest up to $10,000 each year. Households with big auto payments can now subtract more of those costs before their tax is calculated.
What to Watch Next
Watch how these changes show up in average refund amounts once people file under the new rules. Also, watch whether Congress treats this as a one-time rewrite or returns to adjust the numbers again in a few years.
